Grab expects minimal effect from SST

The ride-hailing company says it will balance the tax impact on both passengers and drivers.

Grab Malaysia says it is trying to displace as much of the cost in the system as possible. (Reuters pic)

KUALA LUMPUR: Ride-hailing services provider Grab Malaysia does not expect its pricing to be affected once the sales and services tax (SST) comes into force on Sept 1.

However, its country head Sean Goh said the company would continue to monitor the situation and balance the tax impact on both passengers and drivers.

“We do not have details on the impact (of SST) yet.

“Currently, we do not expect pricing to really change. What we are trying to do is to displace as much of the cost in the system as possible,” he told reporters after signing a MoU with Media Prima Digital Sdn Bhd for the launch of Grab’s In-Car Media Platform.

Goh said the company was also looking for ways to help drivers earn more, such as through ancillary income, without raising the price of its service.

“Most of the revenue generated from this In-Car Media Platform will be passed on to our drivers because we believe that they will be more productive if we enhance their livelihood,” he said.

The collaboration will see the installation of the Grab In-Car Media Platform in Malaysia, with Media Prima Digital delivering short-form content suited for free in-transit viewing.

A total of 250 Grab cars around the Klang Valley have been equipped with the new media platform, with the ride-hailing company planning to equip over 1,000 cars by the end of 2018.

In a separate development, Goh said the company had been in constant dialogue with the Malaysia Competition Commission since its merger with Uber in March.

“However, there is no issue. It is very hard to actually become anti-competitive in our ecosystem because our biggest competitor is actually car owners.

“Most Malaysians still have cars and the ratio is quite ridiculous,” he added. -FMT